Wednesday, November 28, 2007

Dove Viral Draws Heat From Critics

Dove should have planned to survive a counterattack when it unleashed an "Onslaught" on YouTube.
It's viral video attack on beauty advertising has produced a surprisingly strong and enduring blowback against Unilever from activists, newspaper op-ed writers, bloggers and videographers who see it as hypocritical coming from the same company that markets Axe.




Full version of article: http://adage.com/article?article_id=122185

Monday, November 26, 2007

Social Sites Growing Clout

Thought you would find this interesting.

Social Sites and Blog Growth Supports Word-of-Mouth Importance

Following up on a recent Research Brief on the trust placed in word of mouth marketing, a timely release from Nielsen Online provides October's top U.S. social networking sites and blogs, which shows that MySpace.com had 49.5 million unique visitors in October 2007, growing 19 percent over October 2006.

Top 10 Social Networking Sites for October 2007 (U.S., Home and Work)

Site

Oct-06(000)

Oct-07(000)

Percent Change |

Myspace.com

49,516

58,843

19%

Facebook

8,682

19,519

125%

Classmates Online

13,564

13,278

-2%

Windows Live Spaces

7,795

10,261

32%

AOL Hometown

9,298

7,923

-15%

LinkedIn

1,705

4,919

189%

AOL People Connection

5,849

4,084

-30%

Reunion.com

4,723

4,082

-14%

Club Penguin

1,512

3,880

157%

Buzznet.com

1,104

2,397

117%

Source: Nielsen Online, November 2007

Top 10 Blogs for October 2007 (U.S., Home and Work)

Site

Oct-06 (000)

Oct-07(000)

Percent Change |

Blogger

21,572

34,104

58%

WordPress.com

2,104

11,440

444%

Six Apart TypePad

8,813

10,601

20%

tmz.com

7,107

7,805

10%

LiveJournal

3,366

4,260

27%

Xanga.com

4,760

2,741

-42%

Thatsfit

534*

2,613

389%

Gizmodo

941*

2,135

127%

Autoblog

920

1,949

112%

StyleDash

1,319

1,947

48%

Source: Nielsen Online, November 2007

Monday, November 12, 2007

Bill the client or share in their profits?


Owning the Ad

Ad agency Anomaly is pioneering a new model whereby it provides its creative services in return for a take of the profits. It's a high-risk strategy that could change the industry.

by Douglas MacMillan

Marketers have little reason to care about the performance of a campaign after the client doles out their fee. Take graphic designer Rob Janoff: Working for Silicon Valley marketing firm Regis McKenna in the late 1970s, he created the corporate logo for fledgling tech startup Apple Computer (AAPL), a simple, rainbow-striped apple with a bite taken out of it. For Janoff, it was another day's work; but for Apple, the logo helped forge an iconic brand that today has an estimated worth of over $9 billion. "I got a nice trip for me and my family to Disneyland," says Janoff of his compensation, adding that "It would have been great if I could have gotten some stock [in Apple]."

Taking stock in a brand you help to create is the concept that helped inspire ad industry veteran Carl Johnson to leave a top post at TBWA Worldwide in 2002 to co-found Anomaly, a New York ad firm that opened its doors in 2004. Already, projects for clients like Coca-Cola (KO), Bluetooth headset maker Aliph, and airline startup Virgin America have earned Anomaly credibility on Madison Avenue and more calls from big advertisers. More traditional campaigns for clients like Coke have seen Anomaly acting as a jack-of-all-trades marketer: designing bottles and producing 30-second TV spots. But the agency's unconventional approach of treating marketing campaigns more like intellectual property to be licensed than commodities to be sold could disrupt the long-held model of a nearly $150 billion industry.

Casting Call

Johnson is one of six partners at Anomaly, many of whom were once senior directors at big agencies like TBWA, Weiden & Kennedy, and Saatchi & Saatchi. Each heads a different area of concentration for the 90-person company, such as business strategy or digital creative work. One partner is designated as the "creative catalyst," another is the "head of innovation"—the cutesy titles one might expect from an agency claiming to do things differently—but Johnson is adamant that free collaboration throughout the company is encouraged from inception through launch. And rather than passing assignments down a chain as is more typical in advertising, every new project is put before the entire team, who then "cast" the combination of partners best suited to take the reins.

"We surround what we see as the business issue, rather than 'the need to do an ad,'" says Johnson. Often this means acting more like a chameleon than an agency, tapping in-house pools of expertise in brand strategy, print, TV, digital, outdoor, and product design.

Sometimes, serving the "business issue" simply calls for a roving, creative mind with a keen eye for new trends. Partner Johnny Vulkan is head of innovation, a job that has recently seen him waiting in line four days for the Apple iPhone; having lunch with blog world royalty Arianna Huffington and Nick Denton; and taking a photographing trip to downtown Tokyo. His experiences might yield a promising new partnership, or just introduce the design team to a funky aesthetic they hadn't considered—he's the in-house trendspotter, if you will. Vulkan likes having a job with so little structure, although he admits, "there are moments where it's unclear which of the spinning plates I should stand under."

Personal Stake

Anomaly is currently putting all of its talent muscle to work on a project that takes flight Aug. 8, when passengers first hop aboard Virgin America, a low-fare airline formed by Richard Branson's Virgin Group and a group of U.S. investors, and based in Burlingame, Calif. Anomaly won the account last year, beating out such in-demand agencies as Goodby Silverstein and Crispin Porter & Bogusky. They received a small, undisclosed fee up front for marketing efforts like print and outdoor ads, and a Web site running a contest to "name the planes", but Anomaly will also take a percentage of sales from extras like in-flight entertainment and Burton branded luggage, which it helped to develop and produce. In another first, customers can order the Burton luggage on board their flights.

Retaining and profiting from intellectual-property rights is new territory for advertising, though clients, keen to turn the old, time sheet-centered model of advertising on its head, increasingly are looking for authentic partnerships with their marketing teams. Last year, Seattle agency Cole & Weber/Red Cell, a subsidiary of WPP Group (WPP), produced a TV sitcom that prominently featured Rainier beer (made by Pabst Brewing), with the agency retaining full ownership of the show. Anomaly is betting this will be the model of the future. With an equity stake, says Johnson, the motivation to help a client succeed is more genuine—and the results more impressive. "When we own the IP or we share in the revenue, you can bet we're going to work all day, every day." While revenue-sharing projects currently contribute only about 20% of Anomaly's revenue, Johnson estimates that in 10 years it may be more like 80%. In 2006, Anomaly recorded revenues of around $15 million.

"They live and die by the success of the product, and to me that's very powerful," says Hosain Rahman, CEO and founder of San Francisco-based Aliph, who hired Anomaly for the 2006 launch of Jawbone, its Bluetooth headset designed by Yves BĂ©har, founder of Fuse Project. In this instance, Anomaly holds no intellectual-property rights and is acting strictly as a marketing department: doing market research, media buys, events, and PR. But all of the agency's compensation comes from an undisclosed share of headset sales, a model that sees the agency displaying a huge deal of faith and commitment to a product they didn't help produce. "We are certain we have the best Bluetooth headset to back," says Johnson. Asked if he would soon go back to a fee-based ad agency, Rahman replies, "Probably not."

A True Partnership

Anomaly will wade deeper into the waters of intellectual property at yearend when it launches Eu (pronounced "you"), a line of skin-care products designed and produced with entrepreneur/partner Tammy Ha. The agency will help with marketing and bottle design, and Ha, a former chemist with Neutrogena, is creating 14 or so products, including cleansers, toners, and night creams priced from $50 to $180 each. In this case, company ownership will be split three ways: one-third to Ha, one-third to the agency, and one-third to private investors.

Johnson admits there are uncertainties in the more entrepreneurial projects that make projecting growth a shaky business. "A huge number of new businesses and new brands fail. We have to speculate widely in the belief that some will succeed and that the successes will outweigh the failures," he says.

Suppose it works. If Eu becomes a top-selling product line in high-end department stores across the country, Anomaly has the option of spinning the brand off into its own small business or selling off its shares to the highest bidder. The company has already incubated two successful ventures this way: ShopText, a mobile commerce platform spun off last year; and Lucky Media, a brand that sells ad space on the backs of lottery tickets, which Anomaly sold to Michigan State Lottery. In both companies, the agency retained a share of revenue.

Still, Anomaly knows it can't shrug off its skin as a traditional marketer just yet. A quote stenciled on the wall in the company's posh SoHo loft, attributed to George Bernard Shaw, reads: "The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man." Perhaps Coca-Cola, with which Anomaly has unsuccessfully tried to forge intellectual-property partnerships in the past, is one of the unreasonable men its progress depends on. "That's a great big corporation that has to tread very carefully about how it moves forward," says Johnson of Anomaly's first client, adding that "it wouldn't surprise me in the end if they [want an IP partnership]. If they could create brands rather than buy them for billions, it would be better for them." And, of course, for Anomaly.

MacMillan is a reporter at BusinessWeek.com in New York.

Tuesday, November 6, 2007

Google begins domination of the world. Ifone killer to be launched soon...

Google prepped to launch an open source cell phone. The network mentioned in an article is T-Mobile. Phone makers/manufacturers include Motorola, Qualcomm, HTC. Now the user can make the phone "do anything he/she wants." Whatever that means... so instead of no buttons and Apple telling us what the phone offers, it seems the category killer isnt more prescribed add-ons and apps--total freedom is the way to go.

Will all information go through Google? TV and phone are the only media not in play. Look out, I hear Google loud and clear.


Monday, November 5, 2007

Interesting NYT Article Re: "Anniversary Celebrations"

A Party at Every Turn
By BOB MORRIS
23 September 2007, The New York Times

Last Tuesday night, West 27th Street in Chelsea seemed to be under siege.

Paparazzi, shrieking publicists, pushy handlers, rappers, rockers and Champagne-chugging guests were celebrating the 50th anniversary of GQ. It was a long way from the sophisticated Rat Pack elegance of 1957, the year of the magazine's birth.

On a makeshift stage, Kanye West rapped at full volume.

On the sidewalk, one guest, Douglas Keeve, a filmmaker, surveyed the scene. ''We should all be getting Harry Winston tiaras with a 50 on them,'' he said.

Cynical? Perhaps. But then, anniversaries are so common these days.

As if celebrations for family and friends aren't enough, we are also invited to toast birthdays of successful businesses for the depth of meaning they bring to our lives. Sure, it's nice to know an American magazine has made it to middle age. On the other hand, the promiscuous use of numbers is starting to suggest a shrill midlife crisis.

And what about all the young new publications and companies making fusses about themselves?

Do we live in such competitive times that everything has to have a press release and guest list? Business celebrating its 10th year? Make clients fly in to celebrate.

But just as overused antibiotics can lose potency, so can numbers.

In recent months, decorative types (and the rest of us who cannot keep from studying their migratory patterns) have seen a 60th blowout for Dior at Versailles, a 45th for Valentino in Rome, a 40th for Rolling Stone, a 30th for the New Museum and 20th celebrations for both Susan Blond's publicity company and the Discovery Channel's ''Shark Week.'' Phat Fashions and Luca Luca celebrated 15th anniversaries. Fashion TV celebrated a 10th. Nylon magazine gave a big eighth anniversary party. Complex magazine had one for its fifth, and even more shamelessly, p.i.n.k. vodka saluted its first.

Earlier this month, Fashion Week seemed to be an anniversary of everyone and everything, including the 10th anniversary of Narciso Rodriguez, the 25th of Calvin Klein underwear and the 40th of Ralph Lauren, which inspired a lavish party in Central Park.

''It was an amazing event,'' said Nina Garcia, the fashion director of Elle, a ''Project Runway'' judge and the author of a new book about style. ''But didn't he just have a big anniversary party a few years ago? Who's anniversary will be next?''

That would be the 140th anniversary of Harper's Bazaar, scheduled for later this fall. ''But why not just wait until the 150th?'' Ms. Garcia asked.

Because there's no sense of restraint anymore, that's why.

Did we need to hear so much about the 10th anniversary of the death of Princess Diana in August? Do the Sex Pistols really need a 30th anniversary to excuse another reunion concert? And must we really toast Calvin Klein underwear for 25 years of making men feel inadequate?

''An anniversary lends importance to your event and your content,'' said Jim Nelson, GQ's editor in chief, who knew the magazine's 45th anniversary hoopla five years ago was slightly specious and who can't understand why he has recently been invited to two separate rounds of 25th high school reunion events. ''But we can certainly take it too far. You have to figure out where to draw the line.''

Let's try. Years ending in fives? Not celebration-worthy after the age of 40, O.K.? Unless, of course, it's 75. And 100th anniversaries are always O.K. And 25th wedding anniversaries, too, if anybody can even make it that far. A fifth anniversary for a business? Only if you're very powerful or very desperate.

''With the rest, you're just filling voids between years in order to create excuses for more advertising,'' said Mr. Nelson, whose 50th anniversary GQ party was blaring into the wee hours.

Most of the mob of 500 seemed happy enough with Mr. West's performance. One guest, Mark Hope, visiting from England, put his hands to his ears.

''For the 50th anniversary of GQ we have to endure 50 minutes of this,'' he said.

Yes, but who's counting?

Thursday, November 1, 2007

MySpace Presents:




MySpace and MTV featured U.S. Senator Barack Obama (D-Illinois) as this month's participant in their groundbreaking Presidential Dialogue series. The Dialogue with Sen. Obama took place this Monday, October 29, on the campus of Coe College in Cedar Rapids, IA, being streamed live on MySpace (www.myspace.com/election2008), MTV’s ChooseOrLose.com and MTV Mobile. The debate's taped version was exclusively premiered on air on MTV.

The Presidential Dialogue series is a key component of MySpace's Impact Channel - a hub for social and civic engagement, designated to empower MySpace users to make a difference and to allow politicians, non-profits and civic organizations to connect with MySpace's global audience.

The Impact Channel houses the official MySpace pages for all the major party Presidential candidates, as well as tools to enable voter registration, fundraising, and volunteering.

Wal-Mart Prepares for an Early Christmas


Yesterday, October 31, 2007 (also Halloween) Wal-Mart announced that it will start offering the most popular holiday gifts three weeks prior to "Black Friday." The bargain shopping begins today when Wal-Mart unveils secret shopping specials on its website that will be available Friday, November 2. Five of the most desired holiday gifts will be featured with special prices. Wal-Mart also aims to be one of the first retailers to offer extraordinary bargains far before Thanksgiving, when most retailers start the major Christmas sales and offers. Customers can sign-up to be alerted by e-mails or text messages. Wal-Mart is doing this because it is aware of how popular online comparison shopping has become. This technology integration with bargain shopping is new for the store and its customers. Find the press release at http://www.prnewswire.com/news/index_mail.shtml?ACCT=104&STORY=/www/story/10-31-2007/0004694256&EDATE=

Wednesday, October 31, 2007

Gap Inc.Uses Child Labor




Last week, clothing retailer, Gap Inc., was accused of using child labor in Indian sweatshops to produce a piece of clothing for GapKids. Gap has pulled the controversial clothes from store shelves and immediately launched an investigation. According to Gap, the investigation revealed that a very small portion of a particular order placed with one of its vendors subcontracted to an unauthorized subcontractor without the company’s knowledge or approval. The media has had a field day, with this unfortunate development. NGO’s are asking why the Gap and other companies were not enforcing factory checks before. Gap is attempting to resolve the problem and control the negative repercussions on its corporate image. Gap issued an official statement addressing the accusation.

In 2004, Gap admitted to widespread operational problems from unsafe machinery to child labor violations. The company went to great lengths to turn its image around. During this initial sweatshop controversy the Gap released its first social responsibility report, which is now released annually in an effort combat the negative image. Unfortunately for the Gap, last week’s discovery threatens to unravel Gap’s ethical image and all the good will it created by improving factory conditions since 2004.


Halloween MashUp

A little something fun for Halloween.



Thursday, October 4, 2007

Talk to your daughter before the beauty industry does.




Following the overwhelmingly successful response to its “Campaign for Real Beauty,” Dove is taking what worked and doing it again.

Last year’s incarnation of the campaign most notably stood out courtesy of the “Evolution” video which epitomized the power of the viral marketing phenomenon.

Seeking to keep its brand image strong and hoping to build on the success of the “Evolution” campaign and its ability to ignite passionate engagement and support from women across the globe, Dove recently launched the next chapter – the “Onslaught” video, which it hopes will recreate the media frenzy and put Dove back in the middle of the conversation.

With almost 300,000 hits and countless blog links in less than a week, it appears that “Onslaught” is set to meet or beat the success of “Evolution.”

-Kamil Walji